Form 1099-B is used by brokerage firms to report the sale or exchange of investments and certain other assets during the tax year. You'll typically receive this form if you sold stocks, bonds, mutual funds, cryptocurrencies, collectibles, or other investment property through a brokerage account.
The IRS receives a copy of Form 1099-B, so it's important to report these transactions on your tax return.
What Information Is Reported on Form 1099-B?
Form 1099-B generally includes details about each sale, such as:
- The date the asset was purchased
- The date the asset was sold
- The sales proceeds you received
- The cost basis (what you paid for the investment)
- Whether the investment was held short-term or long-term
- Whether the cost basis was reported to the IRS
Some brokerage firms separate transactions into categories based on holding period and cost basis reporting requirements, making it easier to enter the information into your tax return.
What About Brokerage Fees?
Many taxpayers wonder whether they need to enter commissions, transaction fees, or other brokerage charges separately.
If Your Form 1099-B Already Includes the Fees
Most brokerage firms already account for fees by adjusting either the cost basis or the sales proceeds reported on Form 1099-B.
In this case, do not make any additional adjustments. Enter the information exactly as it appears on your form.
If Your Form 1099-B Does Not Include the Fees
If your brokerage did not include transaction fees, you may need to adjust the gain or loss calculation yourself.
You can generally do this by:
- Increasing the cost basis, or
- Decreasing the sales proceeds
Enter the adjustment when reporting the transaction in the Capital Gains section of the program.
Navigation:
Income → 1099-B → Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc. → Enter Sale → Adjust Cost or Proceeds
Income → 1099-B → Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc. → Enter Sale → Adjust Cost or Proceeds
How Do I Enter Form 1099-B in the Program?
To report Form 1099-B:
- Go to Federal.
- Select Income > Select My Forms.
- Choose Investments.
- Select Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc.
- Enter the information from your Form 1099-B.
The program will use the information you provide to calculate any taxable capital gain or deductible capital loss and prepare the appropriate tax forms.
A Quick Tip Before You Enter Your Form
If your Form 1099-B contains many transactions, your brokerage may provide a consolidated statement or an import option. Review your brokerage documents carefully and compare the entries to ensure all sales are reported accurately. Missing transactions can result in IRS notices because brokers also report this information directly to the IRS.
Properly entering your Form 1099-B helps ensure your investment income and losses are reported correctly on your 2026 tax return, filed in 2027.